Correlation Between Yunnan Xiyi and Changchun
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Changchun UP Optotech, you can compare the effects of market volatilities on Yunnan Xiyi and Changchun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yunnan Xiyi with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Changchun.
Diversification Opportunities for Yunnan Xiyi and Changchun
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Changchun is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Yunnan Xiyi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yunnan Xiyi Industrial are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Changchun go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Changchun
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 0.83 times more return on investment than Changchun. However, Yunnan Xiyi Industrial is 1.21 times less risky than Changchun. It trades about 0.07 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.05 per unit of risk. If you would invest 1,288 in Yunnan Xiyi Industrial on September 12, 2024 and sell it today you would earn a total of 834.00 from holding Yunnan Xiyi Industrial or generate 64.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Changchun UP Optotech
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Changchun UP Optotech |
Yunnan Xiyi and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Changchun
The main advantage of trading using opposite Yunnan Xiyi and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Changchun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Changchun will offset losses from the drop in Changchun's long position.| Yunnan Xiyi vs. Lutian Machinery Co | Yunnan Xiyi vs. PetroChina Co Ltd | Yunnan Xiyi vs. Bank of China | Yunnan Xiyi vs. Gansu Jiu Steel |
| Changchun vs. China Nonferrous Metal | Changchun vs. Yunnan Xiyi Industrial | Changchun vs. Zhejiang Yayi Metal | Changchun vs. Tibet Huayu Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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